Professional Home Staging and Photography Blog: June 2009

The Daily Mortgage Interest Rate Lock Advisory - June 29, 2009

 
What the Mortgage Backed Securities Market is Doing Today:

The FNMA 30 Year 5.0% Coupon opened this morning up 4/32 from Friday's close to 101.94.

 

The price of the FNMA 30-Year 5.0% coupon closed down 3/32 from its opening on Friday to 101.83 (as shown by the white line). The MBS was up as much as 8/32 this morning, but is currently trading up 3/32 to 101.92 (as shown by the blue line). Remember, on mortgage backed securities (MBSs), as the price goes up, the yield goes down - and mortgage interest rates go down with it. I expect that mortgage rates will be the same if not 0.125% better in price today as compared to Friday's close.

Economic Reports Being Released Today:

  • There are no economic reports scheduled for release today.

Important News of the Day:

Today is a relatively quiet day. Mortgage backed securities (and mortgage interest rates) will be driven by the bond markets and the money flow today.

There are five economic reports scheduled for release this holiday shortened week, but four of them are considered only fairly important. And of those four reports, the employment situation report is considered the most important. There are no economic reports scheduled for release on Monday, and the markets are closed on Friday. Look for more details on this week's economic data releases and events on my Weekly Mortgage Market Watch at www.LewCorcoran.com/MyBlog.

What Happening With Mortgage Rates Today:

Moderate Volatility. Overall, we can expect to see some volatility in the markets and in mortgage rates on Tuesday and Wednesday. However, we could see high volatility on Thursday. The reasons are: 1) the report on the rate of unemployment will be released in the morning; and 2) trading in afternoon will probably be light as traders leave early for the long weekend. I recommend that you maintain contact with your mortgage professional this week if you're still floating an interest rate and are getting close to settlement.

In addition, the spring and summer home buying season is upon us. Mortgage rates historically climb this time of year before peaking in July or August. If you haven't locked in a rate yet, then you may want to consider doing so. Floating is making more sense in the short term right now as the markets recover from the dramatic sell off the last couple of weeks, but the ever increasing massive government debt and fears of inflationary pressures could soon drive rates up again. So, if you like the rate that you are being offered today, then there's nothing wrong with locking in. Otherwise keep an eye on the markets and maintain contact with your mortgage professional. The markets can change at any moment.

My Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

  • Float if my closing was taking place within 7 days
  • Float if my closing was taking place within 8 and 30 days
  • Float if my closing was taking place between 31 and 60 days
  • Float if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers. See today's mortgage rates at www.LewCorcoran.com/RateSheet.

 

East Bridgewater, MA 02333
Phone: (508) 443-1332

Lew Corcoran, ASP®, IAHSP, IAHSP-CB
Accredited Home Staging Professional
Professional Real Estate Photographer

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Comment balloon 0 commentsLew Corcoran, ASP® • June 29 2009 10:48AM
The Daily Mortgage Interest Rate Lock Advisory - June 29, 2009
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